BILL ANALYSIS
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THIRD READING
Bill No: AB 1401
Author: Ma (D), et al
Amended: 8/18/09 in Senate
Vote: 21
SENATE FOOD AND AGRICULTURE COMMITTEE : 4-1, 7/7/09
AYES: Florez, Maldonado, Hancock, Pavley
NOES: Hollingsworth
SENATE APPROPRIATIONS COMMITTEE : 8-5, 7/23/09
AYES: Kehoe, Corbett, Hancock, Leno, Oropeza, Price, Wolk,
Yee
NOES: Cox, Denham, Runner, Walters, Wyland
ASSEMBLY FLOOR : 60-16, 5/28/09 - See last page for vote
SUBJECT : Transition to Organics Act
SOURCE : Author
DIGEST : This bill enacts the California Transition to
Organics Act of 2009 which establishes, within the State
Treasury the Transition To Organics Fund (TTOF) to consist
of monies from federal, industry and citizen sources.
Expenditures of money from the TTOF shall be limited to
providing financial assistance to persons who transition
their uncertified farms to certified organic farms and for
administrative expense. This fund shall be administrated
by the Secretary of Food and Agriculture who shall be
authorized to adopt regulations to carry out the provisions
CONTINUED
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of the act.
ANALYSIS : The California Organic Program is responsible
for enforcement of the federal Organic Foods Production Act
of 1990 and the California Organic Products Act of 2003.
These statutes protect consumers, producers, handlers,
processors, and retailers by establishment of standards
under which fresh agricultural products/foods may be
labeled and/or sold as "organic". Enforcement activities
are coordinated with the California Organic Products
Advisory Committee, the United States Department of
Agriculture (USDA), and California county agricultural
commissioners. Activities include program administration,
county biologist training, initiation of complaint
investigation, registration of private certification
organizations, and acting as an information resource on the
California Organic Products Act and California's organic
industry.
The California Organic Products Advisory Committee advises
California Department of Food and Agriculture (CDFA) on
state enforcement and management of the California Organic
Program. The committee consists of 15 members: six
producers, one wholesale distrubuter, two technical
representatives, one environmental representative, two
processor representatives, two consumer representatives,
and one retail representative.
The National Organic Certification Cost-Share Program,
authorized by the Food, Conservation and Energy Act of
2008, allocates funds in proportion to the number of
organic producers and handlers within each state. The
states in turn reimburse each eligible producer or handler
up to 75 percent of its organic certification costs, not to
exceed $750.
To be eligible for reimbursement, an organic production or
handling operation must be located within a qualified
state, comply with the USDA National Organic Program
regulations for organic production or handling and have
received certification or continuation of certification by
a USDA-accredited certifying agent.
This bill establishes the Transition To Organics Fund
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(fund) within the State Treasury, to be administered by
CDFA, consisting of money from federal, industry, and
citizen sources, and provides that the fund shall:
1.Be administered by CDFA which may adopt regulations for
implementation of the fund.
2.Consist of money from federal, industry, and citizen
sources, not General Fund money.
3.Provide assistance to persons transitioning their farms
from uncertified to certified organic production by
offering reimbursement of 25 percent of costs for
obtaining organic certification, but not more that $250
for any transitioning farm.
4.Specify that CDFA administrative costs may not exceed 10
percent of total fund money expended, provided that
sufficient monies are available to cover these expenses,
as determined annually by the Director of the Department
of Finance.
5.Authorize CDFA to administer disbursement from the fund
in coordination with the federal Organic Certification
Cost-Share Program.
6.Specify that CDFA must maintain records of all
contributions and disbursements from the fund and make
those records available to the California Organic
Products Advisory Committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions
2009-10 2010-11 2011-12
Fund
Transition to Organics Act
administration/operations Unknown, likely minor costs
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annually Special*
potentially not reimbursed
financial assistance
Estimated $25 annually, based on
Special*
100 applications for assistance
Transition To Organics Fund
SUPPORT : (Verified 8/18/09)
Catholic Healthcare West
Natural Products Association West
Organic Consumers Association
Organic Pastures Dairy Company
ARGUMENTS IN SUPPORT : Proponents state farmers wishing
to transition to certified organic face a number of
financial challenges when certifying their operations as
organic under the National Organic Program (NOP). The
transition is a three-year process in which the grower
farms as an organic operation while not being able to sell
produce as organic. This, as well as the certifying
requirements, can create a cost hurdle to transitioning to
certified organic. This bill provides a vehicle for the
industry and citizens who wish to promote and support
organic agriculture to assist farmers making the organic
conversion. Similar to the federal NOP Cost-Share program.
This bill will provide needed funds to growers during
their transition period, helping to expand certified
organic produce availability to consumers by increasing
California organic farms.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Beall, Bill Berryhill, Tom
Berryhill, Block, Blumenfield, Brownley, Buchanan,
Caballero, Charles Calderon, Carter, Chesbro, Conway,
Cook, Coto, Davis, De La Torre, De Leon, Emmerson, Eng,
Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani,
Galgiani, Gilmore, Hall, Hayashi, Hernandez, Hill, Huber,
Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal, Ma,
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Mendoza, Monning, Nava, Nielsen, John A. Perez, V. Manuel
Perez, Portantino, Price, Ruskin, Salas, Skinner, Smyth,
Solorio, Swanson, Torlakson, Torrico, Tran, Yamada
NOES: Anderson, Blakeslee, DeVore, Duvall, Gaines,
Garrick, Hagman, Harkey, Jeffries, Knight, Logue, Miller,
Niello, Silva, Audra Strickland, Villines
NO VOTE RECORDED: Nestande, Saldana, Torres, Bass
TSM:do 8/18/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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